The new year often ushers in new goals for all of us, especially business owners who want to push for more success. After a hectic holiday season, many businesses are scrambling to keep up a steady pace in the first quarter of the new year. However, if you’re a business owner who has made some financial goals for yourself as well as for your business in 2020, it’s important to consistently revisit those goals every few weeks to remind yourself why you made them. One of the most popular goals for business owners is to secure more funding, which we all know, requires a good business credit score. According to Alabrava, 33% of small business owners say a lack of funding is a challenge. If you and your business faced a bumpy road in this last quarter, here are 3 tips to keep your credit in check to increase your chances of business funding.
- Pay off the debt
Just as most people hit the reset button by starting off the new year with a clean slate, business owners should hit the reset button by clearing the slate of any old business debts. If there account receivables that need to be paid off or any IOUs from clients, get those taken care of immediately. Spend as much time clearing away clutter and cobwebs from the past year. Organize your accounts and balance your books to see where you stand as a business. When you start the year off with clarity, you’ll have a better idea of where to take your business and how to implement your plans.
- Check your credit report for errors
We all know that it’s important to check your credit report a few times a year to keep your score updated. However, many owners may fail to realize that it’s equally as important to check your business credit report. Whether for business or not, checking your credit report is one of the preventative measures in keeping your score up. One reason is that business owners need to check their reports for any errors or false information. Without an accurate report, your business credit score could be greatly impacted by a mistake and lower your chances of loan approval. Companies such as Star Credit Repair ranks credit repair companies and can offer you a consultation to see if credit repair is right for you and your business.
- Save money and spend less
Is your business racking up debt faster than it’s making money? If so, there’s a serious reality check that may need to take place. Although every business owner needs to learn to take risks, it’s also important to gauge the practicality as well as the reasoning behind your business risks. If cash flow is already running low, owners need to take a good look at whether it’s best to decrease spending or increase funding. Without the right data and analytics to make these choices, it will be hard to make financially prudent decisions. All in all, it’s important to prioritize your business budget to see where spending can be cut.
Final Thoughts
Building up your business credit takes time, effort, and consistency. However, by practicing these 3 tips, you can increase your business credit score in no time and increase your chances of getting the funding you need. When it comes to pursuing business funding, companies such as Opportunity Business Loans can help you connect to a large network of lenders with just one application.